“Segro Boosts Rent Revenue and Expansion Plans with Successful Fundraising
Segro, a major warehouse player, secured £29 million in new rent agreements and signed £17 million in pre-let developments during the first quarter of this year. The company also invested £99 million in new developments within the same period, with a total investment of £600 million projected for the year, according to its latest trading update.
The FTSE 100-listed real estate investment trust reported selling £159 million worth of properties so far this year at prices exceeding their book value from December. The company noted a stabilization in industrial and logistics asset values based on market data.
Segro aims to increase its passing rents by over 50% in the next three years to achieve an average yield on cost between seven and eight percent. Customer retention has seen an increase, rising from 82% in the first quarter of the previous year to 90% currently.
Although the occupancy rate dipped slightly to 94.5% from 95% at the end of last year and 95.7% in the first quarter of 2023, David Sleath, Segro’s CEO, lauded the company’s strong portfolio and operating platform.
In February, Segro raised over £900 million from investors for its development pipeline, focusing on 24 data sites across the UK and continental Europe for potential transformation into data centers. This new equity enables the pursuit of growth opportunities through development and asset acquisitions, instilling confidence in future earnings and dividend growth for 2024 and beyond.
Segro, listed in the UK with secondary shares on the Paris stock market since 2020, continues to leverage strong demand from investors for funding its growth and strategic initiatives.”
